BillSherpa · Patient Advocacy · Updated 2026
Medical bill went to collections — will it destroy my credit score?
Medical debt and credit reporting changed dramatically in 2023. If you have a medical bill in collections, the impact on your credit may be much smaller than you think — and possibly zero. Here's what the rules actually say now.
The major changes to medical debt credit reporting (2023 and beyond)
In 2023, the three major credit bureaus — Equifax, Experian, and TransUnion — voluntarily made significant changes to how medical debt is reported:
- Paid medical collections no longer appear on credit reports at all. Once you pay or settle a medical collection, it must be removed from your report immediately.
- Medical collections under $500 no longer appear on credit reports. If your medical debt is less than $500, it should not be on your credit report regardless of payment status.
- The waiting period before reporting was extended to one year. Previously, unpaid medical debt could be reported after 6 months. Now it's one year — giving you more time to resolve the bill before it affects your credit.
The CFPB is pushing further. The Consumer Financial Protection Bureau has proposed a rule to remove all medical debt from credit reports entirely. As of 2026 this proposal is working through the regulatory process. Check cfpb.gov for the latest status.
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How to check whether medical debt is on your credit report
- Get your free credit reports. Go to annualcreditreport.com — the only federally mandated free credit report site. Get all three reports (Equifax, Experian, TransUnion).
- Look for accounts from collection agencies. Medical debt that's been collected will typically show the collection agency's name, not the hospital. Common medical debt collectors include Resurgent, Radius Global, and Amsher.
- Verify the amounts and dates. Check that the reported amount matches what you were billed, and that the date of first delinquency is accurate. The date matters for how long it can remain on your report.
- Dispute anything that shouldn't be there. If a medical debt under $500 is on your report, or if a paid medical collection is still showing, file a dispute with the credit bureau directly at each bureau's website.
If it is on your report — how much does it affect your score?
Even if a medical collection does appear on your report, the impact is typically lower than other types of collection debt. The newer credit scoring models (FICO 9, FICO 10, and VantageScore 4.0) weight medical collections significantly less than other collections. Many lenders use these newer models. If your lender uses an older model (like FICO 8, still common for mortgages), the impact is higher.
How to get a medical collection removed
- Pay or settle the debt. Once paid, the collection must be removed from all three reports under the 2023 rules.
- Dispute inaccurate collections. If the amount is wrong, the date is wrong, or the debt has already been paid, dispute it in writing with the bureau. The bureau has 30 days to verify it or remove it.
- Send a "pay for delete" letter. Though the bureaus officially discourage this, some collection agencies will agree to remove the account from your report in exchange for payment. Get any such agreement in writing before paying.
- Wait it out. Collection accounts that are reported can only remain on your report for 7 years from the date of first delinquency. After that they must be removed by law.
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Frequently asked questions
I have a $600 medical collection on my report. Shouldn't it be removed?
The $500 threshold only applies to collections reported after July 2023. If your debt was reported before then, the old rules may apply — though you can still dispute it with the bureau and request removal if it was under $500. Even for amounts above $500, consider whether paying and requesting removal is worthwhile depending on your credit goals.
I paid a medical debt years ago but it's still on my report.
Under the 2023 changes, paid medical collections should have been removed. File a dispute with each credit bureau immediately, referencing the payment date and providing proof of payment if you have it. The bureau must investigate and remove it if it verifies as paid.
How long does a medical collection stay on my credit report?
Under federal law (Fair Credit Reporting Act), collection accounts can remain for 7 years from the date of first delinquency on the original account. However, the new bureau policies mean paid medical collections are removed immediately, and unpaid collections under $500 no longer appear at all.